INSTITUTIONAL PRESENTATION

DISCLAIMER This presentation may contain certain forward-looking statements with respect to Springs Global, including its business operations, strategy, and condition. These statements include descriptions regarding the intent, belief or current expectations of Springs Global or its officers with respect to the results of operations and financial conditions of the Company and its subsidiaries.

The words “believe”, “can”, “may”, “aim”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “assume” and similar words are used in this presentation to identify forward-looking statements. These forward-looking statements include information concerning results and projections, strategy, funding plans, competitive position, the industry environment, potential opportunities for growth, the effects of future regulations and the effects of competition, among others.

Investors are cautioned that any such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of Springs Global and its subsidiaries that may cause the actual results of the Company to be materially different from any future results expressed or implied in such forwardlooking statements.

Forward-looking statements included in this presentation speak only as of the date on which they are made and the Company does not undertake any obligation to update them in light of the new information, or future events or other factors.

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CONTENT

1

OVERVIEW OF SPRINGS

2

STRATEGIC POSITIONING

3

OPERATING HIGHLIGHTS

4

APPENDIX I. Divestment of Non-Core Assets II. Industrial Process

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1. OVERVIEW OF SPRINGS

SPRINGS GLOBAL OVERVIEW

WHO WE ARE

BUSINESS MODEL

• Leader in home textile products; • Traditional and leading brands strategically positioned to target customers of different socioeconomic profiles • Strong presence in the retail segment: Casa Moysés, MMartan and Artex.

• Large scale and low cost manufacturing; • State-of-the-art industrial platform; • Manufacturing-retail integration, complete solutions of coordinated products and clients services; • National footprint through owned and franchise stores; • Long-term relationship with multibrand retailers. SALES BY REGION

2012 FINANCIAL HIGHLIGHTS

• Gross Sales: R$2.1 billion • EBITDA: R$196.0 million • EBITDA Margin: 11.6% • Net Debt: R$592.9 million

CAPITAL MARKET

• Share Price (05/31/13): R$3.18 • Market Cap (05/31/13): R$636.0 million • EV/ 2012 EBITDA (05/31/13): 6.3

SALES BY CATEGORY

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ORGANIZATIONAL STRUCTURE

200 million shares

(1) Retail

COTEMINAS S.A. (100%)

SPRINGS GLOBAL US Inc. (100%)

COTEMINAS ARGENTINA S.A. (100%)

SPRINGS CANADA HOLDINGS, LLC (DELAWARE, EUA) (87.5%)

AMMO VAREJO 100% (1)

6 operation: includes Artex, MMartan , and Casa Moysés.

MANUFACTURING-RETAIL INTEGRATION Springs is part of the Coteminas Group, which operates in the home textile , apparel and agribusiness segments:

COTTON PRODUCTION

YARN MANUFACTURING

FABRIC MANUFACTURING

PRODUCTS DESIGN

DISTRIBUTION CHANNELS

• Through an affiliate of Springs Global, the Coteminas group produces cotton.

• 14 industrial plants: 8 in Brazil, 5 in the United States and 1 in Argentina; • Responsible for approximately 10% of the Brazilian consumption of cotton.

• Leader in home textile products; • Large scale and low cost manufacturing; • State-of-the-art industrial platform.

• Brands with strong presence in home textile, targeting specifics segments of consumption in Brazil, Argentina and North America; • Leadership in branding, design and innovation.

• Long-term relationship with multibrand retailers; • Complete solutions of products and services for all customers; • Strong knowledge and efficiency in retail logistics; • National coverage through a network of proprietary and franchise monobrand stores;

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HISTORY The history of the company in Brazil began in 1967.

Period of Strong Growth

Acquisition of Springs Industries

Wentex IPO Company focused on manufacturing T-shirts, rapidly achieved a leading position in the market One of the most successful IPOs at the time Period of Expansion Strong growth of the group Consolidation of the group´s textile companies under Coteminas

99-05 94-99 1967

1994

Growth in Exports Foundation of Coteminas BRL depreciation made Brazilian products even Beginning of operations more competitive of Companhia de Tecidos Norte de Minas, Coteminas

Strategic Repositioning

Joint venture with Springs Industries JV between Coteminas and Springs Industries to form Springs Global Rationale: to combine low-cost and efficient Brazilian plants with brands and distribution platform in the US and Canada Springs Global IPO

2012 2009

2011

08-09

Manufacturing-Retail Integration Acquisition of MMartan store 2005 Unfavorable Macro Scenario chain Rapid expansion of retail stores: Unfavorable macroeconomic events from 57 at acquisition to 168 in BRL appreciation hindered exports 2011 Economic crisis in the Northern hemisphere Launch of Artex Retail Stores 635 524475 510 Launch of Artex retail stores in 2011, 387423 Exportações Export 306272 with 39 stores openings 288 (2011=100) (2001=100) 100 99 Preparation to launch Casa Moysés retail store

2007

01 02 03 04 05 06 07 08 09 10 11

Launch of Casa Moysés retail store Conclusion of the realignment of the manufacturing capacity in Brazil and abroad.

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GEOGRAPHIC DISTRIBUTION Springs operates 8 industrial plants in Brazil, 5 in the United States and one in Argentina.

Montes Claros (MG)

João Pessoa (PB)

Macaíba (RN)

Campina Grande (PB) Blumenau (SC)

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OPERATING SEGMENTS Springs` operations are segmented as follows:

NORTH NORTH AMERICA AMERICA

SOUTH AMERICA

WHOLESALE SEGMENT

INTERMEDIATE PRODUCTS

RETAIL SEGMENT

MULTIBRAND RETAILERS

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2. STRATEGIC POSITIONING

STRATEGIC OBJECTIVES Springs has identified five (5) key strategic objectives:

1. RE-FOCUS ON MERCOSUL

5. MANUFACTURING - RETAIL INTEGRATION

4. DEVELOPMENT OF MONOBRAND RETAIL CHANNELS

1

Re-focus operations in the Mercosur region, consolidating the Company’s leadership position in the bedding, tabletop and bath market;

2

Leverage and enhance its proprietary brand portfolio in order to consolidate its leadership position;

•

2. ENHANCE THE VALUE OF OUR BRAND PORTFOLIO

3. ENHANCE RELATIONSHIPS WITH MULTIBRAND/RETAILERS CLIENTS

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•

Further promote and develop relationships with multibrand retailers/clients;

4

•

Expand distribution capacity through monobrand channels using, primarily, the franchise model;

•

Integrate the Company’s industrial and retail operations, positioning Springs as a benchmark in the areas of innovation and management excellence.

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COMPETITIVE ADVANTAGES Marcasand Líderes e Estrategicamente Leading Strategically Positioned Segmentadas Brands

•

Springs´brands are all traditional and leaders in the segment in which they compete;

Modelo Business de Negócios Model

•

Technological excellence and operational scale that guarantee industrial efficiency;

Liderança Market Leadership de Mercado

•

One-stop-shop supplier of a complete portfolio of home textile products;

Design Design e Desenvolvimento and Product Development de Produtos

•

Expertise in design and product development. Recognized for its leadership in marketing strategy and brand management;

Design e Desenvolvimento Monobrand Retail de Produtos

•

Complete solution of products and services through its network of Casa Moysés, MMartan and Artex retail stores;

Estratégia Multichannel Multicanal Strategy

Experienced Administradores Management, Experientes Committed e Comprometidos to the Company com a Companhia

•

Multichannel distribution strategy in Brazil as well to achieve maximum productssegmentation and nationwide commercial coverage;

•

One of the most experienced management teams in the global home textile industry.

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3. OPERATING HIGHLIGHTS

OPERATING HIGHLIGHTS Operational excellence in the segments in which it operates.

WHOLESALE

• Vertically integrated manufacturing

RETAIL

• Monobrand retail stores:

of home textile products;

• Commercial presence in Canada; • Sales of Utility bedding and CAMEBA

– Intermediate products;

products through multibrand retailers;

– Bedding, tabletop and bath

and institutional clients. • Brands:

• Industrial plants in the United States and Argentina;

• Focus on two segments:

(CAMEBA) for multibrand retailers

FOREIGN MARKET

• Leading portfolio of owned and

• Brands:

franchised stores; • Market leader with 231 stores (Dec 2012); • Presence in all major Brazilian cities.

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OPERATING HIGHLIGHTS Springs is a leader in home textile products.

CAMEBA

• Complete line of bedding, tabletop

UTILITY BEDDING

• Pillows;

INTERMEDIATE PRODUCTS

• Category represented by yarns and

and bath products (CAMEBA):

• Mattress pads;

fabrics , sold mainly to small and

– sheets and pillow cases sold

• Blankets;

medium garment, knitwear and weaving

separately;

• Manufacturing facilities in the United

companies;

– sheet sets;

States and Brazil:

– tabletops;

– Martinsville (VA);

– towels;

– Commerce (CA);

– bathroom rugs and accessories.

– Bartlesville (OK);

• Fabrics sold in their natural state or dyed and printed.

– Cartesville (GA); – Nashville (TN); – Blumenau.

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DISTRIBUTION CHANNELS Springs products are sold through two main sales channels: Multibrand Retail Clients CAMEBA products are sold to multibrand clients in North and South America under a portfolio of traditional and leading brands.

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DISTRIBUTION CHANNELS Monobrand Retail Stores In Brazil, Springs operates stores and/or manages a franchise system that operates under Casa Moysés, MMatan and Artex brands which, combined with the electronic commerce platform, ensures commercial presence and a national footprint.

Stores Profile Nember of Stores (Dec 2012)

Target Customer

Average Store Size

ARTEX

54 owned

Middle Class Consumer (B)

120 - 200 m²

MMARTAN

48 owned | 128 franchise

High-end Consumer (A)

80 - 160 m²

CASA MOYSÉS

1 owned

Premium Consumer (A+)

200 m²

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BRANDS - BRAZIL Springs´brands and products are strategically positioned to target customers of different socioeconomic profiles and are leaders in the segments in which they compete

•

Premium brand of bedding and bath textile products aimed at consumers who seek the highest standard of quality. It is a reference brand in the high-end luxury market, with presence and tradition since 1930.

•

Brand for high quality products in the bedding, tabletop and bath category. It is synonymous of quality, sophistication and contemporariness, representing a major brand in the domestic market.

•

Brand associated with quality products under the concept of affordable luxury, always updated with the latest fashion trends. Each collection includes textures, shapes and unique colors, all integrated in four different Home Life Styles: Actual, Relax, Trend and Elegance.

•

Traditional and leading brand of bedding, tabletop and bath products and bedding accessories. It features contemporary styles and designs, and focuses on different tastes and trends, with significant penetration in the ”budget segment” and institutional market.

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BRANDS – NORTH AMERICA

•

•

Brand positioned in the affordable luxury segment. Primarily sold through large retailers in North America.

•

Established in 1907 as a national brand of textile products in Canada. Wabasso is synonymous with quality, taste, style and comfort.

Traditional brand of bedding and bath products focusing on institutional clients in Canada.

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BRANDS - ARGENTINA

•

Brand for quality products under the concept of affordable luxury. Products are updated with the latest fashion trends. Leading brand with over 30 years of presence in the Argentinean market.

•

Brand offering traditional design and style, focusing on different tastes and trends, and with major market penetration.

•

Bedding and bath textile products for clients in the budget market segment.

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4. APPENDIX

I. DIVESTMENT OF NON-CORE ASSETS

DIVESTMENT OF NON-CORE ASSETS •

Realignment of the manufacturing capacity to domestic and Mercosur market;

•

Company has converted three manufacturing units into urban development areas, with the construction of residential and commercial complexes. São Gonçalo do Amarante

Montes Claros

Blumenau (part of the plant)

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II. INDUSTRIAL PROCESS

RAW MATERIALS •

Many of our raw materials are commodities with prices that vary according to the fluctuations in supply and demand.

•

We buy large quantities of cotton, polyester, nylon and latex, as well as large quantities of chemical products like dyes, sodium hydroxide, hydrogen peroxide and packaging materials, including cardboard boxes, and vynil plastic packaging.

•

The two main raw materials used in our manufacturing process are: •

Cotton: Our supply of cotton is obtained through supply contracts with more than 80 different suppliers from various parts of Brazil, as well as from international traders based in Switzerland and the United States. In general, our supplies are acquired through futures contracts, by which cotton deliveries are made on scheduled delivery dates.

•

Polyester: We acquire almost all of our polyester in Brazil. Due to the fact that we continuously acquire polyester throughout the year, and in high volumes, we are able to acquire the product at fairly stable prices. Although polyester prices can be affected by changes in the price of oil, such prices also tend to follow the prices of cotton, with more moderate fluctuations

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MANUFACTURING PROCESS

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INTERMEDIATE PRODUCTS Yarns: • Spinning is the process by which fibers are gathered to create the yarns which are then used in the fabrics. • The principal technologies used for production of yarns are ring, open-end (also known as rotor) and air-jets spinning. • Open-end spinning is six to nine times more productive than ring spinning, which reduces the cost of production. Air-jet spinning is on average twice as fast as open-end spinning, yet it is less versatile. • Both, the open-end and air-jet spinning technologies produce yarns with consistent quality, while ring spinning produces softer yarn. Fabrics: • Weaving is the process of interlacing the yarns for the production of fabric. Weaving consists of introducing the yarn perpendicularly and interlacing a layer of parallel yarns. • Plain fabric undergo a process of dyeing and/or printing and finishing, and then are cut and sewn for the fabrication of consumer products.

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CAMEBA Sheets and Pillowcases: • The fabric is sent to a machine that thermally fixes its dimensions, aligns its yarns and improves the touch and texture of the material. • Once the production of the fabric is finalized, the process for manufacturing sheets and pillowcases requires cutting, sewing and packaging of the material according to the various technical specifications, based on customers’’ requests. Towels: • The yarns may be dyed before weaving, depending on the specifications and designs of the towels. • The yarn is then transformed into towels by means of modern high velocity air-jet or tweezers looms. • Some of these looms are capable of producing jacquard designs, enabling production of considerably sophisticated product patterns. • The fabric is then taken to the finishing process where it is bleached by a rope or open bleaching process. • The product is then dyed and or printed, washed and finished. • Finally, the towels are cut, sewn and packaged according to the specifications and shipped to our customer.

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UTILITY BEDDING Blankets: • Blankets: Blankets that are destined for the institutional market (e.g. hospitals, spas, and hotels) are dyed by a process called VAT, so as to attain more solid colors. • Through this process the dye adheres to the fibers by a reduction/oxidation reaction. The product is then cut and sewn according to the technical dimensions and specifications. •The blankets are then submitted to additional washing and drying processes to improve their texture. Pillows: • The fibers are received in bales and blended in order to make them more uniform. • After this process, the fibers are processed by a carding process, which sets them into parallel positions, forming a web that is then folded several times and cut into specific sizes. • An adequate quantity is then rolled up and inserted into the pillow case. The pillow is finalized with stitching in order to be closed Comforters and Mattress Pads: • Similarly to pillows, then fibers are received in bales and blended for better uniformity. • Following this process, they are processed by a carding operation where the fibers are combed, set in parallel and compressed to form the comforters. • The comforter is sewn and inserted between the two sides of the comforter or mattress pad, based on the customers’ specifications. • The cover of the comforter of mattress pad is then sewn and closed.

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INVESTOR RELATIONS Josué Christiano Gomes da Silva CEO

Levindo Ozanam Coelho Santos CFO AND IR DIRECTOR

Gustavo Kawassaki IR MANAGER

[email protected] Phone: +55 (11) 2145.4476

Further information may be obtained on the Company`s website:

www.springs.com/ri